Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
10th December, 2015
Subject: Clarification regarding defective notices issued to FII/FPIs-reg.
Notices of defective returns were issued under section 139(9) of the Income-tax Act to Foreign Institutional Investors/Foreign Portfolio Investors (FIIs/FPIs) in cases where Balance Sheet and P&L account were not filled.
In order to overcome this difficulty, it is clarified that such returns will not be treated as defective in cases where the FIIs/FPIs:
i) is registered with SEBI
ii) has no Permanent Establishment/ Place of Business in India
iii) has provided basic information required under section 1 39(9)(f) of the Income-tax Act, if there is business income
All such cases , where the SEBI registration number has been provided by the FIIs/FPIs in the return for AY 2015-16 are being taken up for processing at CPC Bengaluru. For previous assessment years where the above information is not available in the Income Tax Return, FII/FPI may provide such details in their online response on the e-filing portal of the Income-tax Department (www.incometaxindiaefiling.gov.in) to the previously issued notice u/s 139(9) of the Income-tax Act.
Official Spokesperson, CBDT